SHANKAR PRAHLAD DESHPANDE Vs. SETH GENDALAL MOTILAL PATNI

JUDGEMENT

(1.) Gendalal--hereinafter called the mortgage--filed Suit No. 11 of 1939 for recovery of the amount due under a deed of mortgage of proprietary rights in certain villages executed in 1929 by Prahlad--father of the appellant. A preliminary mortgage decree was passed declaring that Rs. 2,16,309/11/9 were due on the mortgage. The decree was made absolute for sale. The mortgage commenced in 1948 proceedings for executing the decree.

(2.) On March 31, 1951, the Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act 1 of 1951 was brought into force. By virtue of Section 3 of that Act the proprietary rights of holders of estates, mahals, alienated villages and alienated lands stood vested in the State. Chapter IV of the Act provided for "determination of debts". The mortgagor Prahlad applied on April 26, 1951 to the Claims Officer under Section 19 of that Act for "determination of the debt" due to the mortgagee and for scaling down the debt. The mortgagee contended that the debt had, by adjudication of the Court, been merged into a decree and there was no "secured debt" which could be determined or scaled down. The Claims Officer held that there was a debt due to the mortgagee, that it was a secured debt, and that he had jurisdiction to "determine the debt". On November 19, 1951 the Claims Officer directed the mortgagee to submit a statement of the claim under Section 22 of the Act.

(3.) Against the order of the Claims Officer, the mortgagee appealed to the Board of Revenue. Following the judgment of the Nagpur High Court in Ramkishan v. Board of Revenue, Madhya Pradesh I.L.R. (1954) Nag. 430 the Board of Revenue set aside the order holding that the Claims Officer had no jurisdiction to decide the question whether there was a secured debt, and that the Civil Court alone was competent to decide that question.